2016 Credit Suisse Energy Conference Final

8/18/2019 2016 Credit Suisse Energy Conference Final

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HESS CORPORATION

CREDIT SUISSE ENERGY SUMMIT

FEBRUARY 24, 2016


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This presentation contains projections and other forward-looking statements within

the meaning of Section 27A of the Securities Act of 1933 and Section 21E of theSecurities Exchange Act of 1934. These projections and statements reflect thecompany’s current views with respect to future events and financial performance.

No assurances can be given, however, that these events will occur or that theseprojections will be achieved, and actual results could differ materially from those

projected as a result of certain risk factors. A discussion of these risk factors isincluded in the company’s periodic reports filed with the Securities and ExchangeCommission.

We use certain terms in this presentation relating to reserves other than proved,such as unproved resources. Investors are urged to consider closely the disclosure

relating to proved reserves in Hess’ Form 10-K, File No. 1-1204, available fromHess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/oCorporate Secretary and on our website at www.hess.com. You can also obtainthis form from the SEC on the EDGAR system.

2

Forward-looking statements and other information


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Our Strategy in the Low Oil Price Environment

Preserve BalanceSheet Strength

• Pro forma year-end 2015 cash balance of $4.3 billion and totalliquidity of ~$9 billion1

• Pro forma Net Debt / Cap of ~8%1

• 2016 capital and exploratory budget reduced to $2.4 billion -40% below 2015 levels

Preserve CoreOperating

Capabilities

• Focused, resilient portfolio linked to our top quartileoperating capabilities

• Balanced mix of high quality unconventional / conventional,onshore / offshore and US / International assets

• Leveraged to liquids with industry-leading cash margins

Preserve Long-Term Growth

Options

• Leading positions in the Bakken and Utica shale plays withsignificant drilling inventory• North Malay Basin and Stampede add material production and

cash flows in 2017 and 2018, respectively

• Liza discovery offshore Guyana and Sicily discovery in Gulf ofMexico ranked as two largest oil discoveries of 2015

31 Based on year-end 2015 cash and cash equivalents plus cash from February 4, 2016 equity offering


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13%*16%

19%24% 25%

30%34%

36% 37%39%

45%

52%60%

68%

0%

10%

20%

30%

40%

50%

60%

70%

HES OXY PXD MRO MUR EOG COP NBL APA DVN APC WLL CLR CHK

0.1 0.1

0.4

0.1

1.1

0.0-

0.2

0.4

0.6

0.8

1.0

1.2

2015 2016 2017 2018 2019 2020

4

Peer Net Debt-to-Capital RatioQ3 2015

Source: Company filings

• $9 B of L iquidity Post Equity Offering

- $4.3 B Cash- $4.0 B Unused Revolver

- $0.7 B Unused Committed Lines

• Net Debt-to-Capitalization ratio ofapproximately 8%

• 2016 E&P Capital & ExploratorySpend of $2.4 B- 40% reduction in spend from 2015 in

response to low oil prices

• Joint Venture funds future Midstreamcapital expenditures- ~ $340 million in 2016

- ~ $175 - 225 million annually over nextfive years

Average = 36%

$B Managed Debt Maturities

*Excludes Hess Infrastructure Partners Note: Hess Net Debt / Capital ratio at 12/31/15, pro formafor 2/4/16 equity offering, was 8%

One of the Strongest Balance Sheets And liquidity positions among E&P Peers

8%


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Located in areas where Hess is competitively advantaged

5

Utica7% Prod

2% Res

North Malay

Basin2% Prod

North Sea• Leveraging industry leading chalk

reservoir drilling experience

SE Asia• Top quartile offshore project delivery and

reservoir management• Leverage JDA experience and strong

partner relationship

Deepwater GoM• Deepwater developments and

strong partner relationships • Industry recognized development

and deepwater drilling capability

Onshore USA• Industry leading Bakken well

costs and productivity. Leanmanufacturing and advantagedinfrastructure

• Utica leveraging Bakkencapability and experience

West Africa• Industry leading drilling performance,

building on EG deepwater experience• Optimizing value through seismic

technology and drilling excellence

Bakken30% Prod

28% Res

Valhall &South Arne

13% Prod

25% Res

JDA10% Prod

10% Res

DeepwaterGoM

16% Prod8% Res

Tubular Bells& Stampede

7% Prod3% Res

Net Production: 2016 assumes zero contribution from Libya

Reserves: 2015 Year End Proven, includes Libya

Ghana

EquatorialGuinea10% Prod

3% Res

GrowthBase

Focused Resil ient Portfol ioLinked by operating capabilities

2016 Production: 330 - 350 MBOED

P1 Reserves: 1.1 BBOE

6P Resources: ~ 7.4 BBOE


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0

10

20

30

40

50

60

70

45

39

34 3331 32

29 28 26 2724

2623 22 22 22 21

18 17 16

Q12011 Q2 Q3 Q4 Q12012 Q2 Q3 Q4 Q12013 Q2 Q3 Q4 Q12014 Q2 Q3 Q4 Q12015 Q2 Q3 Q4

5.4 5.6 5.3 5.0 4.8 5.1 4.8 4.8 4.7 4.5 4.2 3.9 3.9 3.5 3.2 3.2

8.06.0

4.2 4.0 3.8 3.3 3.0 2.8 2.8 2.9 3.0 3.2 2.92.1 2.1 1.9

13.4

11.6

9.5 9.0 8.6 8.47.8 7.6 7.5 7.4 7.2 7.1 6.8

5.6 5.3 5.1

Q12012

Q2 Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4

Reducing Well Costs…

Drilling Performance: Spud-to-Spud (Days)

64% Improvement

Drilling & Completions Performance: Costs ($MM)

62% Improvement

…While Optimizing Well Productiv ity

H e s s

B C D E F G

H I J K L M

N O

P Q

R S T A

Hess Peers

Completion Costs Drilling Costs

6

Average 90-Day Ini tial Product ion (MBO) by Complet ion Date

Hess Wells Peer Wells

Low cost + high productivi ty = enhanced returns

Industry Leading Operating PerformanceUnconventionals - Bakken

Well Count

0

100

200

300

400

500600

700

800

900

B a r r e

l s o

f O i l P e r

D a y

( b o

/ d )

Operator Average 30-Day IP Rate (since YE 2012)

H e s s

C B D E F G

H I J K L M

N O

P Q

A


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Source: Rushmore data 2014

Industry Project Delivery(IPA Study 2005 - 2013)

-20%

0%

20%

40%-20%0%20%40%

Ahead(Behind) Schedule

C a p e x

U n

d e r

( O v e r

)

Major Project Delivery“Best in Class” Zone

Hess

Others

T Bells

Drilling PerformanceQuartile

1st 2nd 3rd 4th

Ghana

North Malay Basin

Tubular Bells

Equatorial Guinea

South Arne

Industry Leading Operating Capabilit iesOffshore drilling and project delivery

7

NMB EPS

Source: IPA Study (2005 - 13) updated with recent Hess projects

Hess Avg.2009 - 2014


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80% 78% 76%65% 64% 64% 62% 62% 57% 53% 49%

31% 28%

0%

20%

40%

60%

80%

100%

MRO HESS OXY PXD EOG CLR MUR COP APA DVN APC NBL CHK

NGLs11%

Int'l

Gas14%

USGas12%

Liquids % of YE 2014Reserves

2015Hess Production

Pro Forma74%

Liquids

8

Crude Oil63%

Focused Resil ient PortfolioLeveraged to liquids with industry leading cash margins

Source: Bloomberg

Source: Thomson One (Adjusted Net Income), 3Q 2015 10-Q SEC filings (DD&A, Exploration Expense)Cash Margin = Adjusted Net Income [excluding special items] + DD&A + Exploration Expense

$27$23 $22 $21 $21 $20 $20 $20 $19 $19 $18 $17

$10

$-

$10

$20

$30

HES APA APC CLR MRO MUR PXD NBL OXY COP EOG DVN CHK

3Q 2015 Cash Margin


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• Strategic / Portfo lio Context

- Industry leading acreage position in the coreof the Middle Bakken and Three Forks

- Top quartile well cost and productivity,delivering some of the highest returns in play

- Advantaged infrastructure enhances netbacks

• Asset Details- 583,000 net acres; Hess ~ 70% WI, operator

- 2016 net production 95-105 MBOED

- Net Estimated Ultimate Recovery ~1.6 BBOE

- ~3,200 future operated drilling locations

- 30 Day IPs: 800 - 950 BOPD

- Plan 2 rig program in 2016 in response to lowoil prices

- 2016 Bakken E&P capex ~ $425 MM

One of the Best Positions in the BakkenCompetitively advantaged with Lean manufacturing process

9Major contributor to future resource and production growth

New Town

Keene

Stanley

Watford

City

Williston

Kenmare

Grassy

Butte

Killdeer

Buelah

Hess Acreage

Tioga Rail Terminal

30 Miles

Tioga Gas Plant

Dickinson

Tioga

Dunn

McKenzie

Mountrail

Williams

Burke

Billings

Stark

Mercer

Divide


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One of the Best Positions in the BakkenMaterial position in the core of the Bakken

DSU: 1,280 acre Drilling Spacing Unit

Source: NDIC and Hess analysis

30+ Stage Wells Since 2012

East

Nesson

Stony

Creek

Goliath

Keene

Little

Knife

Murphy

Creek

Buffalo

Wallow

Hess Acreage

Core Middle BakkenCore Three Forks

Industry MB Wells:90 Day Cumulative Oil

> 45 MBO

< 25 MBO

25 - 45 MBO

Red Sky

10

-

100

200

300

400

Hess CLR WLL XTO COP Statoil MRO EOG OAS

More DSUs in Core of Middle BakkenThan Any Other Operator

N o .

o f D S U s

Bakken Operators

WTI $/bbl

~3,200 Future1 Operated Drilling Locations% of Total Inventory & Implied Rig-Years vs WTI Price

(15% AT IRR Threshold)

40 50 60 70 80 90-100

100%

(144 ri g-yrs)88%

(126 ri g-yrs)

67%(97 rig-yrs)

40%

(57 rig-yrs)20%

(29 rig-yrs)8%

(12 rig-yrs)

1PF Jan 2016, assumes 22 wells/rig-year

Three Forks

Middle Bakken


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Sardinia

Joint Venture committed to pursuing MLP IPO

Tioga Rail Terminal

Tioga Gas Plant

11

One of the Best Positions in the Bakken Advantaged infrastructure maximizing value

• Hess sold 50% interest in Bakken Midstreamassets to GIP for $2.675 B

• Created new joint venture called HessInfrastructure Partners

• Total after-tax cash proceeds to Hess of $3.0 B,including JV debt issuance

• Hess retains operational control of BakkenMidstream assets

• Transaction delivered significant and immediatevalue to shareholders


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Utica: Material Posit ion in the Wet Gas Window Acreage in play sweet spot with high NRI

12

JV AcreageOptimum Mix of Pressure and Liquid Content

Athen s A Pad

Cadiz A Pad

Oxford A Pad

Cadiz B Pad

Kirkwoo d A Pad

Arch er A Pad

Improving Liquids

Tier 1 Acreage

Tier 2 Acreage

Core posit ion in prol ific Utica Shale play

• Strategic / Portfolio Context- Wells highly productive, high liquids content

- Leveraging Bakken capability to maximizeefficiency and reduce costs

• Asset Details- 50% WI; 95% gross NRI

- 50,000 net acres

- 2016 net production 20 - 25 MBOED

- No drilling planned after 1Q16

- 2016 capex $45 MM


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• Strategic / Portfolio Context

- Material growth asset

- Key contributor to productionand cash flow

- Leverages deepwater capability

• Asset Details

- 57.1% WI, operator

- First oil November 2014


- 2015 cash margin $21 / BOE

- 2016 capex ~$140 MM

Oil & GasExport

Pipelines

Manifold

Drill Center 1

Water InjectionLineDrill Center 2

Dual Flowlines &Umbilical

Material production and cash flow

Deepwater Gulf of Mexico: Tubular BellsLow cost production leveraging deepwater capability

13

Water Depth ~4,400 ft

Drilling TD ~24,000 ft


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Adds ~15 MBOED production and becomes material cash generator in 2018


- Leverages proven deepwater capability- Material contribution to 2018+ growth

- One of the largest undeveloped fields inGoM (300 - 350 MMBOE grossrecoverable)

• Asset Details

- 25% WI, operator

- Progressing hull and topsides fabrication

- Plan to commence drilling in 2016; first

oil targeted in 2018- Gross processing capacity of 80 MBOD

- Mature captured near field exploitation

- 2016 capex ~$325 MMWater

InjectionTree Subsea Infrastructure

Water InjectionPipeline

TLP

ProductionManifold &

Trees

Gas LiftManifold

ProductionFlowlines

Deepwater Gulf of Mexico: StampedeBuilding on Tubular Bells success

14

Host Platform

Drill Center A

Drill Center B

6 Production Wells

4 Injection Wells

GC 511 GC 512

GC 468

Flying DutchmanHess 25% / Operator

Water Depth ~3,500 ftDrilling TD ~31,000 ft

1 mile


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- Material cash flow- 4D seismic for continuing identification

of high value drilling opportunities tomaintain production plateau

- Leverages deepwater capability

• Asset Details

- 85% WI, operator

- 2016 net production 30 - 35 MBOED

- Process new 4D seismic / maturefurther exploitation opportunities

- No drilling planned in 2016


- 2016 capex ~$40 MM

West Africa: Equatorial GuineaMaximizing value through 4D seismic and drilling excellence

15

Oil-bearingsands

OF-12

Infill Well:Present-Day Oil Saturation from 4-D Seismic

Okume TLPWater Depth ~150 - 2350 ft



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- Growth asset with material cash flow- Multi year drilling inventory

- Leveraging expertise in horizontal,managed pressure drilling in chalkreservoirs

• Asset Details

- 61.5% WI, operator


- No drilling planned after 1Q16


- 2016 capex ~$80 MM

North Sea Chalk: South ArneMaterial asset with continuing development potential

16

Water Depth ~200 ftDrilling TD ~18,000 ft

WellheadPlatform

North

S. ArnePlatform

Wellhead

PlatformEast

WHPNorth

1 Mile

S. ArnePlatform

S. Arne Development Schematic


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- Long life, material asset- Underdeveloped chalk reservoir;

significant remaining upside

- Working with operator to leverage chalkexpertise from South Arne

• Asset Details

- 64% WI, operated by BP

- 2016 net production ~30 MBOED

- Redevelopment completed 1Q13,

extended life by 40 years- 2015 cash margin $25 / BOE

- 2016 capex ~$60 MM

North Sea Chalk: ValhallLong life asset with material upside

17Valhall Development Schematic



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- Low cost, long life gas reserves withoil linked pricing

- Material production, free cash flow

- Leverages shallow water offshoredevelopment capabilities

• Asset Details

- 50% WI, operated by Carigali-Hess

- 2016 net production ~200 MMSCFED

- PSC through 2029


- 2016 capex ~$50 MM

Malaysia Gas: Joint Development AreaLong term production and material cash flow

18

Malaysia

Thailand

JDA

Cakerawala Platform

30 MilesWater Depth ~180 ft



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- Growing Malaysia supply/demand gap- Low risk development of 9 discoveries

- Material production and cash flow 2017+

- Oil indexed GSA through 2033

- Leverages JDA experience and strong

Petronas relationship- Near field exploration upside

• Asset Details

- 50% WI, operator

- 2016 net production ~40 MMSCFED- Full Field Development completion 2017;

net production up to ~165 MMSCFED

- 2016 capex ~$375 MM

Malaysia Gas: North Malay BasinLow risk, oil linked gas development

19

Thailand

North Malay

Basin

Early Product ion System


Malaysia30 Miles

Adds ~20 MBOED production and becomes long-term cash generator in 2017


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RISK

Bakken

Valhall

S ArneNMB

T Bells

Base

HIGHER LOWER

Evaluate CaptureDrill /

Appraise

DevelopProduce /

Re-Develop

StrategicGrowth

Pathways

Guyana

Nova Scotia

Utica

Bakken

T Bells

North Malay Basin

Stampede

S Arn e

Valhall

Ghana

OFFSHORE

20

Utica

Gulf of Mexico

Aust ral ia

Bakken

- 1.6 BBOE net EUR- ~3,200 future drilling locations

Utica- 300 MMBOE net EUR- >500 drilling locations

North Malay Basin- Full field development underway- Net production to quadruple to

165 MMSCFED in 2017

Stampede

- First oil targeted in 2018- Net production ~15 MBOED

Exploration- Recent material discoveries in

Guyana and the Gulf of Mexico

Competitively Positioned for GrowthSignificant captured growth options


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GoM

Ghana

Guyana

OffshoreCanada

Latin America

USGoM

NovaScotia

Exploration Focus Areas

Existing Provinces

Emerging Provinces

Atlantic Margin

21

Yet to Find Volumes

Gas Liquids

5 -10 B BOE

10 - 20 B BOE

W. Afri ca

Source: Wood Mackenzie / Hess Analysis

Mexico

• Focused strategy to deliver

material long term value• Exploration themes:

- Focused: In basins we understand andthat leverage our capabilities

- Balanced: Between both proven and

emerging areas- Impactful: Materiality and running room

- Value driven: Through working interestmanagement, liquids rich areas andattractive fiscal terms

• Goals- Add 600 - 700 MMBOE resources over

5 years

- Achieve


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22

Offshore Guyana: Stabroek LicenseLiza-1 significant 2015 oil discovery

Continued exploration of an emerging material deepwater play


- 6.6 MM acres; ~1,150 GoM blocks- Multiple prospects and play types

• Forward Plan

- Liza-1 encountered 295 feet of high-quality oil bearing sandstone reservoirs

- New 17,000 km2 3-D seismic acquisition98% complete

- Liza-2 well spud February 2016

- Four wells to appraise and furtherexplore the Stabroek Block planned 2016

• Asset Details

- 30% WI, op. by Esso E&P Guyana Ltd.

D G lf f M i Si il A i l


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Sardinia

23

Deepwater Gulf of Mexico: Sicily Appraisal Appraisal of significant 2015 Paleogene oil discovery


- Large and well imaged 4-way trap- Strategic partnership with proven

operator

• Forward Plan- Sicily-1 well reached TD April 2015

- Sicily-2 spud December 2015; expectresults 2Q16

• Asset Details- 25% WI, operated by Chevron

Miocene

SaltSalt

Salt Core

Wilcox Reservoir

Cretaceous

Basement

W E

Inboard

Paleogene

Outboard

Paleogene

GardenBanks

KeathleyCanyon

GreenCanyon

Sicily - 2

TiberGilaKaskida

Moccasin

Buckskin

Leon

N. Platte


Industry Oil Discovery2016 Hess WellExploration BlockProduction Block

Guadalupe

Melmar-1

Gt White

Perdido

Balanced access via farm-ins

D t G lf f M i M l


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Sardinia

24

Deepwater Gulf of Mexico: MelmarLarge well-imaged Paleogene four-way

• Strategic / Portfolio Context- Largest remaining 4-way in US Perdido

- Low cost access to materialopportunity in high deliverability portionof the Paleogene trend

• Forward Plan- Melmar-1 spud December 2015

- Expect results 2Q16

• Asset Details- 35% WI, operated by ConocoPhillips

Melmar-1

Miocene

SaltSalt

Salt Core

Wilcox Reservoir

Cretaceous

Basement

W E

Inboard

Paleogene

Outboard

Paleogene

GardenBanks

KeathleyCanyon

GreenCanyon

Sicily - 2

TiberGilaKaskida

Moccasin

Buckskin

Leon

N. Platte


Industry Oil Discovery2016 Hess WellExploration BlockProduction Block

Guadalupe

Melmar-1

Gt White

Perdido

Balanced access via farm-ins

Off h N S ti


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Offshore Nova ScotiaMaterial position in emerging deepwater play


- 3.5 MM acres; ~ 600 GoM blocks- Multiple leads in sub-salt play

- 800 MMBOE pre drill net riskedresource

- GoM analogue trap styles

- Oil prone, Cretaceous reservoirs• Forward Plan

- Mature the prospect inventory onnewly acquired 3D WAZ Seismic

- Plan first well in 2017

• Asset Details- 40% WI, operated by BP

25

Canada

USA

100 MilesBP / Hess acreage

Shell acreage Water Depth ~3300-11,500 ft

Access to a material deepwater Gulf of Mexico analogue

S


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26

SummaryKey messages

• Preserve Balance Sheet Strength

• Preserve Core Operating Capabilities

• Preserve Long-Term Growth Options


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2016 Credit Suisse Energy Conference Final

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